Gap Is a Global Brand, but Recently the Company Has

question 49

True/False

Gap is a global brand, but recently the company has struggled to connect with customers in the United States.

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Definitions:

Monopolistically Competitive

A market structure where many sellers offer products or services that are similar but not perfect substitutes, allowing for some degree of market power.

Product-variety Externality

The impact on consumer welfare or market efficiency due to variety in products available, often seen as a positive externality in markets.

Business-stealing Externality

A negative effect where a new entrant in a market draws customers from existing businesses, potentially harming those businesses without creating new value for the market as a whole.

Negative Externality

A cost that affects a party who did not choose to incur that cost, often associated with the production or consumption of a good or service.